The economy could be playing a major role in gas prices, according to GasBuddy
As some states are seeing gas price relief compared to months ago, GasBuddy says the U.S. economy could play a major role in future prices.
A slowdown, like we saw with the second consecutive negative GDP report, could slow fuel consumption, and in turn lower prices further. But the company also warns that diesel fuel will likely stay much higher than gasoline due to less domestic production.
“The Russian invasion of Ukraine is partially the reason why diesel prices have seen such a significant gap to that of gasoline, and that gap really isn’t changing. I do expect diesel to moderate, but it likely will remain very high compared to gasoline. On the other hand, COVID-19 has played more of an active role in that it limited refining capacity. U.S. refining capacity is down about one million barrels a day compared to where it was in 2019, and that has curbed the ability of refineries to produce as much diesel as the market is looking for,” said Jason Schwantz, CHS Refined Fuels Senior Vice President.
Farm supply experts suggest filling those diesel holding tanks right now as prices will likely rise back up in the Fall.